Tue, May 17, 2022 @ 16:46 GMT
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Rise in Petroleum Demand Signals Pickup in US Economic Activities

The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks slumped -7.67 mmb to 1275.92 mmb in the week ended May 21. Crude oil inventory fell -1.66 mmb (consensus: -1.05 mmb) to 484.35 mmb. Stockpile decreased in 4 out of 5 PADDs. PADD 2 (Midwest) and PADD 3 (Gulf Coast) saw declines of -1.69 mmb and -1.9 mmb, respectively. Cushing stock dropped -1.01 mmb to 44.76 mmb. Utilization rate added +0.7 percentage point to 87% while crude production steadied at 11M bpd for the week. Crude oil imports decreased -0.14M bpd to 6.27M bpd in the week.

Concerning refined oil product inventories, gasoline inventory dropped -1.75 mmb, to 232.48 mmb as demand rose +2.76% to 9.48M bpd. The market had anticipated a -0.61 mmb decrease in stockpile. Production slipped -0.05% to 9.75M bpd while imports dropped -4.35% to 1.03M bpd during the week. Distillate stockpile declined -3.01 mmb to 129.08 mmb. The market had anticipated a -1.9 mmb fall. Demand soared +9.93% to 4.46M bpd. Production added +2.46% to 4.67 mmb while imports gained +2.25% to 0.27M bpd during the week.

A day earlier, the industry-sponsored API estimated that crude oil inventory was down -0.44 mmb. Gasoline stockpile dropped -1.99 mmb, while that for distillate plunged -5.14 mmb.

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